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How to sell a business fast
Many people believe that financial hardship is the leading factor, but we know it’s not the only reason. These guidelines won’t just help you, the seller, to sell your business swiftly and easily, they’ll also benefit the buyer. It’s a win-win.
Let’s start with how you can get over the finish line quicker when selling a business.
Why sell a business fast?
Apart from financial burden, one of the biggest factors a vendor might be looking to sell their business is due to personal circumstance. Ranging from a business owner experiencing poor health, or even a family member, situations can change quickly and without warning.
If a vendor requires a quick sale of their company and falls short on time preparing that business for market—collecting financial statements, legal documents, etc.—it could mean they have to compromise on price.
Despite this, it’s important to know that there is help available when you need it.
What is the process of a business sale?
Our role at LINK Business Brokers is to represent the seller in the best way we can. When a vendor tells us their personal circumstance is a big part of why they want to sell quickly, we work closely with them to plan, prepare and execute a strategic sale.
Even with a short window of time, which could range from a couple of days to a few weeks, we could structure a firm sales profile.
As the vendor’s representative, it’s our job to get the best market rate and the highest price possible.
What are the steps for speeding things up?
The key to a fast sale is preparation of information a buyer will likely need to make a purchasing decision. One of the first things you should do as a business owner is to contact your accountant. Not only will they need to know your situation, they’ll be able to help you navigate through the sales process. Simply ask your accountant to supply you with financial statements going back three years. This is a great step in preparing your business for sale. A good broker will help identify the items you will need from your accountant.
The second important step is to marketing your business extensively. The more buyers, the faster they move and the better the price.
Another step you can take to make sure the business continues to run in your absence is by looking to your staff members to fill any gaps or holes. Hiring a broker can help with this process, as it frees up your attention. You can focus on ensuring the big picture is taken care of, while your manager runs the actual business.
Think about who can manage the business and pick up from where you left off. This is a critical step because it allows you to do what you need to do without any added pressure from the business. It’s also a good sign to any buyer that the company can still run without the company head.
There are still factors outside your control if you’re facing the pressure of a fast sale. But by preparing your financial statements you make it easier for a buyer to determine whether your business is right for them.
After that, surround yourself with good advisors—your accountant, an honest business broker, and your lawyer.
Finally, remove yourself from the day-to-day running. If necessary, hire people to do your job while you take care of the transaction. You need to prove to a potential buyer that the company can run without you.
With the right instruction, and with a preparedness to compromise, you stand the best chance of getting the best price for your business.
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